Prof. Dr. Robert Fieten

Transcription

Prof. Dr. Robert Fieten
Prof. Dr. Robert Fieten
Director Management Research Team, Cologne (Germany) und
Member of the Board of BME, Frankfurt/Main (Germany)
robert.fieten@netcologne.de
Procurement
Procurement Strategies
Strategies of
of the
the
German
German Manufacturing
Manufacturing Industry:
Industry: How
How
to
to Become
Become aa Preferred
Preferred Supplier
Supplier
© Prof. Dr. Robert Fieten 2010
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Look upon the crisis like the Chinese:
Combination of risk/threats and opportunity
© Prof. Dr. Robert Fieten 2010
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Agenda
Why Leveraging Procurement and Supplier
Relationship Management are Crucial for the
German Manufacturing Industries
What is going on in the Supply Markets with the
Economy Rebounding?
How to become a Preferred Supplier
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© Prof. Dr. Robert Fieten 2010
Two old wisdoms to start with
People do not understand how important is
thriftiness as a source of income.
(Marcus Tullius Cicero)
When the wind of change is blowing,
you can build walls or - windmills.
(Chinese wisdom)
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… and a new wisdom follows
2009/2010 have been for the German
manufacturing industries the years of
procurement and supply management!
Procurement and supply management
have been for our manufacturing
industries and even the service industries
effective strategic levers to face the
challenges of the recession!
Buyers´ markets in 2009 offered new
opportunities and windfall profits. But will
this continue?
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In 2009 the German industry suffered from the
sharpest downturn after world war II
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Low capacity utilization in the metal and electrical
industries
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But: Positive expectations and good facts are back; bookto-bill ratios are improving
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The recession seems to be over! But is the crisis under
control?
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Manufacturing recovery is in full swing worldwide
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More manufacturing orders and inventory cycle ending
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What is needed to come out stronger of the crisis?
Work smarter not harder not only within your own company but also
in the whole supply chain.
Become agile instead of clumsy and bureaucratic.
Focus on your technical know-how and sharpen your unique selling
proposition/profile.
Do the splits between intelligent cost saving and innovating for new
businesses.
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Which are the key tasks of procurement in
the current economic situation?
Stabilize the EBIT margins not through squeezing only the prices but
through optimizing the total material costs of ownership together
with the preferred suppliers.
Optimize the capital employed in the supply chain.
Manage the risks in the supply chain (insolvencies of suppliers we
depend on).
Work smarter not harder with your preferred suppliers.
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© Prof. Dr. Robert Fieten 2010
Excellence in procurement pays off
Operative Margin
Other Costs
Staff Costs
EBIT margin in
%
Costs of Purchasing
Profit contribution of
procurement
Trade
3,4
52%
Foods
2,5
60%
MCR = Material Cost
Reduction in % of the
total material costs/spend
Chemical Industry
5,0
24%
EM = EBIT Margin %
Mechanical
Engeneering
3,3
0%
25%
50%
75%
43%
MC = Material Costs in %
of revenues
PI = Profit Impact of
procurement as
compared to necessary
revenue growth
100%
MC x MCR
PI =
EM
Reducing material costs by 3% has the same
profit impact like increasing turnover by
© Prof. Dr. Robert Fieten 2010
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Agenda
Why Leveraging Procurement and Supplier
Relationship Management are Crucial for the German
Manufacturing Industries
What is going on in the Supply Markets with the
Economy Rebounding?
How to become a Preferred Supplier
© Prof. Dr. Robert Fieten 2010
14.04.2010/ Seite 15
What has been changing for procurement
throughout the crisis?
The good message for purchasing managers:
The sellers´ markets of the boom that made life very
difficult for the purchasing managers throughout the last
three years have become buyers´ markets in 2009.
Two bad messages for purchasing managers:
(1) Supply shortages and prices going up.
(2) The risk of suppliers´ defaults have increased and
will further increase through 2010.
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Supercycle of the commodity prices was only interrupted!
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Challenges: Higher material prices and longer delivery
periods
© Prof. Dr. Robert Fieten 2010
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Agenda
Why Leveraging Procurement and Supplier
Relationship Management are Crucial for the German
Manufacturing Industries
What is going on in the Supply Markets with the
Economy Rebounding?
How to become a Preferred Supplier
© Prof. Dr. Robert Fieten 2010
14.04.2010/ Seite 20
Expectations towards preferred suppliers (after the
recession)
Quality excellence and reliability of supplies and services
Liability and warranty according to customer needs
Competitiveness as to prices and productivity increases
Innovational capability: target cost achievement for products and
projects, synchronized technology roadmap
Complementary capabilities: together we are stronger
Financial stability/solid balance ratios
Transparency and communication
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© Prof. Dr. Robert Fieten 2010
Forms of cooperation OEM/suppliers
Market based
competition
Selective
competition
Selective
partnership
Basis der
Beziehung
Daten
Informationsaustausch
Wissensvermittlung
Aufbau von
Fachwissen
Dauer des
Einsatzes
Transaktion
(kurzfristig)
Jahresvertrag
Lebensdauer
Über die Lebensdauer
der Baureihe hinaus
Keine Lieferanteneingliederung
Begrenzte Lieferanteneingliederung in die
Produktentwicklung,
entlang festgelegter
Schnittstellen
Lieferanteneingliederung in die
Produktentwicklung,
gemeinsame
Bestimmung der
Schnittstellen
Eingliederung von
Bereichen/Teams,
gemeinsames Konzept
u. Produktentwicklung,
Investierung in gemeinsame Anlagegüter
Kugelschreiber
Pressteile
Auspuffsysteme
Antriebssystreme
Grad der
Eingliederung
Beispiele
Strategic
alliance
Minimierung des
Stückpreises
Minimierung der GesamtSystemkosten
Taktische
Taktische Beziehung
Beziehung
Strategische
Strategische Beziehung
Beziehung
Quelle: VDA-Papier
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Role of procurement and preferred suppliers in the product
innovation process
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The relationship with the suppliers must be defined
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Conclusion
What you suppliers should recommend to your customers/the
buyers:
Do what you can do best, and outsource the rest.
What you need in challenging times is confidence in your own
capabilities:
There is no job too immense, when you have confidence
(Elvis Presley)
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